Dollar Tree profit surges 20%

Net sales for the quarter, which ended Jan. 30, increased 10.7% to $1.73 billion . Same-store sales were up 3.9%.

The company's top-performing categories in the quarter included food, party supplies, health and beauty care, and housewares and home products.

Dollar Tree said it plans to increase capital spending in 2011 to $215 million to $225 million, up from $178.7 million last year. Capital projects include 300 new Dollar Tree stores and 75 relocations and expansions; 35 new Deal$ locations and approximately 17 Dollar Giant stores in Canada.

The company will also expand its distribution center in Sylvania, Ga., from 600,000 sq. ft. to one million sq. ft.